Published on 10/27/2014 in the Prospect News High Yield Daily.
New Issue: Carrizo Oil sells upsized $300 million tap of 7˝% notes at 100.5 to yield 7.346%
By Paul A. Harris
Portland, Ore., Oct. 27 – Carrizo Oil & Gas, Inc. priced an upsized $300 million add-on to its 7˝% senior notes due Sept. 15, 2020 (B2/B/) at 100.5 to yield 7.346% on Monday, according to a syndicate source.
The quick-to-market deal was upsized from $250 million.
The reoffer price came at the cheap end of the 100.5 to 101 price talk.
Wells Fargo Securities LLC was the left bookrunner. RBC Capital Markets LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, BBVA Securities Inc., Capital One Securities Inc. and Credit Agricole Securities (USA) Inc. were the joint bookrunners.
The Houston-based oil and gas exploration and development company plans to use the proceeds to pay substantially all of the purchase price of the company’s Eagle Ford Shale acquisition.
| Issuer: | Carrizo Oil & Gas, Inc.
|
| Face amount: | $300 million, increased from $250 million
|
| Proceeds: | $302 million
|
| Maturity: | Sept. 15, 2020
|
| Security description: | Add-on to 7˝% senior notes due Sept. 15, 2020
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | RBC Capital Markets LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, BBVA Securities Inc., Capital One Securities Inc., Credit Agricole Securities (USA) Inc.
|
| Co-managers: | SG CIB, MUFG, Regions Securities LLC, Iberia Capital Partners LLC, KeyBanc Capital Markets Inc.
|
| Coupon: | 7˝%
|
| Price: | 100.5
|
| Yield to worst: | 7.346%
|
| Spread: | 614 bps
|
| First call: | Sept. 15, 2016 at 103.75
|
| Trade date: | Oct. 27
|
| Settlement date: | Oct. 30 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 100.5 to 101
|
| Marketing: | Quick to market
|
| Original issue: | $300 million priced at par in September 2012
|
| Total issue size: | $600 million
|
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